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GMS Market Commentary on Shipbreaking in Week 06 - VOLATILITY REIGNS!

Steel News - Published on Tue, 13 Feb 2018

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Following on from last, another flat week concluded in the recycling markets as a steady reluctance from recyclers to pay some of the ongoing exorbitant Cash Buyer asking prices and some reverberating volatile fundamentals (in tandem with the recently rocky international stock markets) started to tell of a nervous sub-continent recycling market.

Indeed, local steel plate prices suffered another set of worrying reversals midweek (just as global stock markets started to plunge), only to find their feet in the final few days of the week, subsequently bringing some needed relief to the anxious ship-recycling sector.

Several Cash Buyers are still hoping that the markets hold going into the traditionally quieter Chinese New Year holiday period, as there remain several expensive and unsold vessels in a variety of hands, all of who will be hoping for further market gains in the days / weeks ahead (rather than any declines that could prove disastrous).

Meanwhile, the VLCC market continues to shed tonnage at pace as news of yet another unit being committed, surfaced this week. This has taken the total to almost 10 units sold / beached for the year already!

Overall, it does seem increasingly clear that prices will likely not breach the USD 500/LDT mark any time soon (as many were hoping for), despite some clearly over exuberant market sales having been concluded through early 2018 (which have eventually lost the relevant Cash Buyers considerable amounts on their trades).

As the Chinese New Year holidays commence at the end of the coming week, it could be a quieter period (in terms of overall supply) and this should give the markets a chance to steady themselves for a renewed push on levels as February concludes.

For week 6 of 2018, GMS demo rankings / pricing for the week are as below.
RankLocationSentimentDry BulkContainersTankers
1IndiaSteadyUSD 440 / LTUSD 460 / LTUSD 450/ LT
2BangladeshSteadyUSD 430 / LTUSD 450 / LTUSD 440 / LT
3PakistanWeakeningUSD 440 / LTUSD 450 / LTN/A
4TurkeySteadyUSD 280/ MTUSD 280 / MTUSD 290 / MT
5ChinaWeakUSD 210/LTUSD 230 / MTUSD 230 / MT
 

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Posted By : Ratan Singh on Tue, 13 Feb 2018
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